Question: If a new development in some urban area causes public costs to rise but only by as much as the extra property taxes generated by

If a new development in some urban area causes public costs to rise but only by as much as the extra property taxes generated by the new development, then a development charge or levy is:

a. efficient and therefore warranted.

b. inefficient and should not be imposed.

c. possibly efficient, but the anonymity test needs to be applied.

d. efficient, but would distort the use of resources.

e. warranted if it is less than the capitalized value of the annual taxes.

  

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